E-commerce has flourished on social media platforms recently, as the applications that have appeared recently have encouraged online shopping. The ongoing change in the retail industry is a well-known phenomenon. The retail sector is continuously evolving due to the continued wave of digitalization [1-2]. Nowadays, consumers face a challenge when deciding whether to shop online or offline. It needs to be determined which mode of shopping can fulfill consumers' shopping interests and maximize their satisfaction [3]. PWC [4] highlights that physical stores have an annual decrease in customer visits. However, most consumers still favor shopping in a traditional physical store due to the better evaluation of the product. Online retail has gained significant importance to consumers who value convenience [5]. First of all, the digitalization process's possible impacts on brick-and-mortar retail stores need to be determined. The main objective of the study is to find out how satisfied customers are with the online and offline purchase service from Lulu and Carrefour in Nizwa. 

Statement of the Problem 

While store-based retail is expected to be the preferred retailing format in Oman, non-store retail including online shopping is expected to grow  strongly   in   future.   Retail

sales across four Gulf countries – Oman, Kuwait, Saudi Arabia and the United Arab Emirates are projected to increase by more than $24 billion over the next five years, with Oman’s retail industry expected to rise 9.3 per cent during that period, according to global research firm Euromonitor International. Research from the company indicates that Oman’s retail industry was worth $10.3 billion in 2018 and is forecasted to steadily rise to $11.3 billion by 2023. While store-based retail is expected to continue to dominate, with it currently accounting for $10 billion of the overall market in Oman, non-store retail, including online shopping, is expected to grow by 68 per cent from 2018 to 2023. Euromonitor’s research reveals that Oman is all set to capitalise on the rise in consumerism due to a rise in population and a strong growth trajectory in tourism and per capita income. The brick-and-mortar retailers are expected to establish an intuitive and smart communication with consumers across online and offline platforms.

Significance of the Study

The accomplishments made by the retail sector in Oman are today, making their mark on the economic scene. Over the years from 2015 to 2017, the retail sector has contributed around eight per cent to the Gross Domestic Product (GDP), representing an annual contribution of over rial Omani two billion. The optimistic view regarding this promising sector is that it is expected to achieve development of more than $300 billion in the GCC region by 2021. Experts in the sector expect it to develop in the Sultanate over the next three years to account for 10 per cent of the GDP [6]. This study highlights the satisfaction of online and store purchase of Omani consumers in this region. Therefore, this study is highly significant.

Objectives of the Study

• To identify and compare the preference of online and offline retail purchase

• To analyse the levels of satisfaction of customers who shop online and offline

• To find out the major factors that influence store and online shopping

• To understand and compare the online and offline services offered by Lulu Hypermarket and Carrefour

Literature Review

Gokulnathan [7] explored the elements influencing consumers' Online shopping during the COVID-19 pandemic in Chennai City and estimated the impact of item factor, value factor, efficient factor, installment factor, security factor, authoritative factor, and mental factor from 230 online customers. All elements aside from value factor and security factor had a positive relationship with buyers' online shopping. Krishna & Joy [8] explored the factors that encourage in pre-purchase information search from 1079 online customers. Consumers are likely to use both traditional offline information sources and online information sources when they purchase online. Individual factors, such as Internet usage experience, need for cognition and age, also tend to influence consumer preference for different online and offline sources. Nebojsa, Milorad and Tanja [9] stated that consumer satisfaction with online shopping in Serbia is directly dependent on security, information availability, shipping, quality, pricing, time, and customer satisfaction. Robert and Sandra [10] studied the effect of the consumers’ perceptions of their offline and online gendered behaviour on online utilitarian shopping motivation and purchase intentions. Utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (online) overall: strongly for females but not for males. Conversely, utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (offline). Chen et al. [11] identified the major factors affecting the consumers online shopping during the COVID-19 pandemic in China. Service quality, commodity prices, and online shopping experience that affect online shopping in normal social background were insignificant in this pandemic. According to Ghraibah [12] online customer retention has become essential for the success of businesses during COVID 19. The study proposes that attitude, customer satisfaction, ease of use and responsiveness will have a direct effect on online customer retention among 224 customers of retailers in Saudi Arabia. Responsiveness, customer satisfaction, ease of use and attitude are important for online customer retention. According to Muhammed and Satish [13], shopping has changed as a result of the influence of technology with most people preferring online shopping to the traditional physical store shopping. Male population tend to shop more online shopping rather than physical shopping. For safety of payment more preference is given to shopping malls related to physical shopping. People are slowly going for online shopping but the majority mentality of people goes to physical shopping as it is having trust, feel and touch of the product. FlipKart and Jabong are the major players in the online retail and online shopping is here to stay and number of people favoring this mode is growing day by day. Puja [14] studied how consumer measure channels for their purchasing that addresses consumer value perception for using the internet shopping versus the traditional shopping. The objective was to provide an impression of online shopping decision process by comparing the offline and online decision making and identifying the factors that motivate customers to decide whether to do online shopping or go for the offline shopping. Females are more into online shopping than males. The people from the age group 35 and above are less likely to do online shopping because they are less aware of the technology. However, they prefer to purchase from online shopping if only the price of the product is less than the market. Sarita et al. [15] examined the factors that influence customer satisfaction in online purchase. They investigated whether reliability, security and quality of the website will affect customer satisfaction towards online purchase among youth in Malaysia. There is no significant relationship between Security and Customer Satisfaction towards online shopping. According to Kiang, Loong and Fong [16] the accessibility of technologies has supported the utilization of online platform, for example, online grocery shopping in Melaka from 150 customers. The five independent variables analysed are perceived usefulness, perceived ease of use, perceived risk, visibility and social influence. Perceived ease of use is found to be insignificant and social influence is identified as the most important factor which influences consumer purchase intention on online grocery shopping in Melaka. Imran and Mohammed [17] investigated the factors that motivate shoppers to buy groceries from online retailers rather than conventional stores from 500 respondents in New Delhi. People who have ordered groceries from online sites were the respondents. The findings affirmed the relationship between consumer satisfaction and perceived convenience, risk factors, perceived product quality, and time value. However, perceived value and value for the time have a little significant effect on consumer satisfaction. Ramatenki and Srinivas [18] examined the factors affecting customer satisfaction concerning online and offline purchasing mobile phones from 600 samples from Hyderabad and Secundarabad cities of Telengana. The study revealed that factors such as availability of variety and brands of mobile phones, features of products; appreciation from viewers and after sales service values showed that there had no significant difference between the factors affecting customer satisfaction concerning online and offline purchasing mobile phones, whereas factors such as product efficiency; product packaging; payment options and comfort ability showed significant differences in customer satisfaction concerning online and offline purchasing mobile phones. Sharon [19] investigated the factors which influence customer online buying satisfaction in the Gauteng province of South Africa from 111 online shoppers. Convenience, delivery, and time saving were viewed by customers as the most important reasons for buying online, while branding was the least important factor. Online retailers should pay specific attention to security and price when designing their market offerings. Adequate security, trustworthiness of information, and privacy should be emphasized in all advertisements and websites. Ease of payment, low prices, and value for money are key factors that online retailers should consider when designing their market offerings. Noura et al. [20] studied customer satisfaction of online shopping in Oman. They investigated the impact of online consumer satisfaction on product quality, application security, delivery guarantee, and online shopping offers. Product quality and service guarantee influenced comfort and satisfaction to the online customers. The service tangibility concerning the guaranteed package and delivery process along with the lowest price motivated them to go for online shopping repeatedly. Alam and Yasin, [21] studied the antecedents of customer satisfaction of online shopping in Malaysia. Consumer satisfaction with online purchasing is influenced by four important factors: website design, reliability, product diversity, and delivery performance. Shankar, Smith and Rangaswamy [22] studied customer satisfaction and loyalty in online and offline environments. Compared to the offline environment, the online environment offers more opportunities for interactive and personalized marketing. The levels of customer satisfaction for a service chosen online is the same as when it is chosen offline. Loyalty to the service provider is higher when the service is chosen online than offline.

Research Gaps

Most of the previous studies focused mainly on the factors of online shopping. Only few factors were considered in the earlier studies for online shopping and in store purchase. Moreover, comparative studies between offline and online retail purchase are limited. Such studies are limited in Sultanate of Oman. This research addresses these gaps by covering all the major factors that influence online and physical purchase in retail sector by comparing two leading hypermarkets in Nizwa.

It is a descriptive study as it covers the customer satisfaction of Omani consumers who purchase from Lulu Hypermarket and Careefour, Nizwa. The study area selected for this research is Nizwa. The period of study is from February 2022 to April 2022.  According to Census Survey by National Center for Statistics and Information, the total number of Omanis in Nizwa is 90,239. Nizwa is the largest populated area in Al Dakhliyah region. This is taken as the sampling frame. The sample size is determined as 384. The sample collected is 163 with a response rate of 43%. The sampling method adopted for the collection of samples is simple random sampling method, where in the customers are contacted on a random basis. Data is collected from primary and secondary sources. Primary data is collected with the help of a structured questionnaire. The construct variables are factors affecting online and store (offline) shopping. The constructs taken is summarized in the following table. The instrument consisted of closed ended questions, which helps the respondents to give proper responses. All the relevant variables are included as section wise. Pilot study was done among 25 respondents to identify the validity of the questions. Thus well-structured questionnaire is administered for collection of data. The data is collected online using Google form. The tools used for analysis includes coefficient of variation, correlation, mean and standard deviation.

Analysis of the Study

The demographic profile of the sample respondents are analysed in the following table.

From the Table 1 is understood that 45% of the respondents are males and 55% of respondents are females. This show majority of respondents are females who shop from Lulu hypermarket and Carrefour. From the table it is clear that 28% of respondents are <20 years. 50% of the sample respondents are aged between 20-<30 years. 16% of the respondents are aged between 30-<40 years. This shows that majority of Omani shoppers who shop from lulu hypermarket and Carrefour are youngsters. 39% of the Omani respondents have family size of more than 7 members. 23% of the respondents stated that their family size as 3 members and 15% of the respondents stated their family size as 4 members. This shows the consumption pattern and purchase frequency of Omani shoppers in retail shops. The personal income of the respondents is evaluated. It is found that 39% of the Omani shoppers have a monthly personal income less than 500 OMR. 30% of the respondents have a monthly income between 500 to 800 OMR. Only 4% of the shoppers have a monthly income above 1700 OMR. This shows the affordability of the Omani shoppers. Among the sample respondents 43% are married and 57% of the shoppers are single. This also shows the demand of goods and purchase of retail goods. 

Table 1: Demographic Profile of Respondents

Satisfaction of Store Shopping in Lulu Hypermarket

The satisfaction of store shopping by Omani customers from Lulu Hypermarket is rated in the following table.

It is clear from the Table 2 that 39% of the shoppers are satisfied by store shopping in Lulu hypermarket, Nizwa and 37% are highly satisfied by the store shopping.

Table 2: Satisfaction of Store Shopping From Lulu Hypermarket

Only 3% are dissatisfied by store purchase in Lulu hypermarket. The level of satisfaction of store shopping in Lulu hypermarket is calculated by the formula mean plus or minus Standard deviation. The mean is 4.09 and the standard deviation is calculated as 0.86. The level of satisfaction of store purchase in Lulu hypermarket is shown below: Table 3.

Table 3: Level of Satisfaction of Store Shopping in Lulu Hypermarket

38% of the Omani shoppers have high level of satisfaction related to store purchase from Lulu hypermarket. The level of satisfaction is medium for 39% of the shoppers and the level of satisfaction is low for 23% of the consumers. 

Satisfaction of Store Shopping in Carrefour

It is revealed from the Table 4 that 40% of the shoppers are satisfied by store purchasing in Carrefour. 27% of the consumers are  highly satisfied and only 7% of the shoppers are dissatisfied by store purchase from Carrefour.

Table 4: Satisfaction of Store Shopping in Carrefour

The level of satisfaction of store shopping in Carrefour is calculated by the formula mean plus or minus Standard deviation. The mean is 3.88 and the standard deviation is calculated as 0.89. The level of satisfaction of store purchase in Carrefour is shown below: Table 6.

It is evident from the Table 5 that 27% of Omani shoppers have high level of satisfaction by store shopping in Carrefour. The level of satisfaction is low for 7% of the consumers and 66% of the shoppers have medium level of satisfaction in store purchase.

Table 5: Level of satisfaction of store shopping in Carrefour

Table 6: Comparison of satisfaction of store shopping in Lulu hypermarket and Carrefour Nizwa

Table 7: Comparison of levels of satisfaction of Omani shoppers in store purchase

Satisfaction of Store Shopping in Lulu Hypermarket and Carrefour

The coefficient of variation is used to compare the consistency and reliability in the satisfaction of store purchase by Omani shoppers in Lulu hypermarket and Carrefour in Nizwa. The satisfaction of retail shoppers is consistent in Lulu hypermarket as the coefficient value is less.

From the table it is shown that 38% of the Omani shoppers have high level of satisfaction in store purchase from Lulu hypermarket. Only 27% of the shoppers have high level of satisfaction in store purchase from Carrefour. Chi-square analysis is used to find the association between retail hypermarkets and levels of satisfaction. The chi-square statistic is 28.10and the p-value (0.00001) is less than 0.05. There is a significant relationship between the two variables. Omani shoppers are more satisfied in store purchase from Lulu hypermarket than Carrefour.

From the Table 8, it is analyzed that Omani shoppers consider various factors in store shopping in retailing and they prefer Lulu hypermarket for retail shopping compared to Carrefour. 

Table 8: Comparison of Factors That Influence Store Purchase in Hypermarket

72% of the Omani shoppers prefer Lulu compared to Carrefour sue to offers and discounts. 64% of the Omani shoppers prefer Lulu hypermarket in Nizwa due to variety of goods available and easy processing at the cash counter. The above table shows that Lulu hypermarket is more convenient for the consumers as they feel better in Lulu hypermarket compared to Carrefour for store purchase.

The factors influencing the retail store purchase is analysed in the above Table 9. 

Table 9: Factors Influencing Retail Store Purchase

Among the 21 variables analysed, it is found that the most consistent and reliable variable that influences the store retail purchase of Omani shoppers is the complaint and grievance handling (21.16). The second most reliable factor is the floor space inside the shop (21.75) followed by offers and discounts (21.76). The least consistent and reliable factor that influence the store retail purchase is the personal interaction of sales people (24.63) and the number of cash counters (24.42).

Satisfaction of Online Shopping in Lulu Hypermarket

The satisfaction of Online shopping by Omani shoppers in Lulu Hypermarket is rated in the following table.

The above Table 10 reveals that 36% of the consumers are satisfied and 19% of the shoppers are highly satisfied with online purchase from Lulu hypermarket. 

Table10: Satisfaction of Online Shopping in Lulu Hypermarket

10% of the consumers are dissatisfied and 2% of the shoppers are highly dissatisfied. The level of satisfaction of Online shopping in Lulu hypermarket is calculated by the formula mean plus or minus Standard deviation. The mean is 3.57 and the standard deviation is calculated as 0.98. The level of satisfaction of online purchase in Lulu hypermarket is shown below:

It is analysed from Table 11 that 18% of the Omani shoppers have high level of satisfaction in online shopping in Lulu Hypermarket. 

Table 11: Level of Satisfaction of Online Shopping in Lulu Hypermarket

13% of the consumers have low level of satisfaction. 69% of the shoppers have medium level of satisfaction through online purchase from Lulu hypermarket.

Satisfaction of Online Shopping in Carrefour

The satisfaction of online shopping by shoppers in Carrefour, Nizwa is rated in the following table.

From the Table 12, it is analysed that 34% of the shoppers are moderately satisfied by online purchase from Carrefour. 

Table12: Rating the satisfaction of online shopping in Carrefour

Table13: Level of satisfaction of online shopping in Carrefour

31% of the consumers are satisfied and 22% of the Omani shoppers are highly satisfied by online purchase from Carrefour, Nizwa. The level of satisfaction of online shopping in Carrefour is calculated by the formula mean plus or minus    Standard   deviation.    The mean is 3.57 and the standard deviation is calculated as 1.02. The level of satisfaction of online purchase in Carrefour is shown below: Table 14

Table14: Comparison of satisfaction of online shopping in Lulu hypermarket and Carrefour 

The level of satisfaction of online shoppers from Carrefour is analysed. 22% of the shoppers have high level of satisfaction in online shopping from Carrefour. 13% of the shoppers have low level of satisfaction. 65% of the Omani consumers have medium level of satisfaction in online shopping from Carrefour.

Satisfaction of Online Shopping in Lulu Hypermarket and Carrefour

From the Table 15 it is shown that 18% of the Omani shoppers have high level of satisfaction in online purchase from Lulu hypermarket. 22% of the shoppers have high level of satisfaction in online purchase from Carrefour. 

Table 15: Comparison of levels of satisfaction of Omani shoppers about online purchase

Chi-square analysis is done to find the association between retail hypermarkets and levels of satisfaction in online shopping. The chi-square statistic is 0.573 and the p value (0.750884) is greater than 0.05.  There is no significant relationship between the two variables. Therefore, it cannot be concluded that online shopping level of satisfaction is high in Carrefour than Lulu hypermarket. Hence there is no significant relationship between the two variables.

The Table 16 shows the factors that affecting on online purchasing from Lulu and Carrefour by Omani shoppers. 69% of the consumers prefer Lulu hypermarket over Carrefour because of offers in online purchase. In all the variables that affect online purchase by the consumers, it is identified that shoppers prefer Lulu hypermarket than Carrefour in online purchase.

Table 16: Comparison of factors that affect online purchase in retailers

The various factors that influence the online retail purchase of Omani shoppers are evaluated. Table 17 variables are taken into the study. Among the variables, the most consistent and reliable variables that influences the online retail shopping is the quality of goods (20.04) which is followed by the convenience in the purchase process (20.81). The least consistent and reliable factor that influence online retail shopping is access of detailed product information and reviews which is followed by the product information in the web site (20.35).

Table 17: Factors influencing online retail purchase 

Findings of the Study

• 50% of the Omani shoppers prefer to shop from the store and only 10% of the consumers prefer to shop online. 39% of the respondents prefer to shop from both the store and online shopping

• The frequency of shopping shows that 30% of the Omani consumers always prefer to buy from a store. 60% of the consumers prefer to shop from the store sometimes. Only 10% of the consumers never prefer to visit the store. 13% of Omani shoppers always buy online from the store 51% of the consumers prefer to shop online sometimes and 36% of the shoppers do not prefer online purchase from retail shops

• 53% of Omani shoppers are willing and preferring to shop from Lulu Hypermarket and 47% of respondents are shopping from Carrefour. This show that people prefer to shop from Lulu hypermarket than Carrefour

• 38% of the Omani shoppers have high level of satisfaction related to store purchase from Lulu hypermarket. The level of satisfaction is medium for 39% of the shoppers and the level of satisfaction is low for 23% of the consumers 

• 27% of Omani shoppers have high level of satisfaction by store shopping in Carrefour. The level of satisfaction is low for 7% of the consumers and 66% of the shoppers have medium level of satisfaction in store purchase

• The chi-square statistic is 28.10and the p value (0.00001) is less than 0.05.  There is a significant relationship between the two variables. Omani shoppers are more satisfied in store purchase from Lulu hypermarket than Carrefour

• 18% of the Omani shoppers have high level of satisfaction in online shopping in Lulu Hypermarket. 13% of the consumers have low level of satisfaction. 69% of the shoppers have medium level of satisfaction through online purchase from Lulu hypermarket

• 22% of the shoppers have high level of satisfaction in online shopping from Carrefour. 13% of the shoppers have low level of satisfaction. 65% of the Omani consumers have medium level of satisfaction in online shopping from Carrefour

• The chi-square statistic is 0.573 and the p value (0.750884) is greater than 0.05.  There is no significant relationship between the two variables. Hence there is no significant relationship between the level of satisfaction of online shopping between Lulu hypermarket and Carrefour

• The most consistent and reliable variable that influences the store retail purchase of Omani shoppers is the complaint and grievance handling (21.16). The second most reliable factor is the floor space inside the shop (21.75) followed by offers and discounts (21.76). The least consistent and reliable factor that influence the store retail purchase is the personal interaction of sales people (24.63) and the number of cash counters (24.42)

• The most consistent and reliable variables that influences the online retail shopping is the quality of goods (20.04) which is followed by the convenience in the purchase process (20.81). The least consistent and reliable factor that influence online retail shopping is access of detailed product information and reviews which is followed by the product information in the web site (20.35)

Recommendations

• Carrefour should provide more value added services and improve the floor service facility to the shoppers to increase customer attraction

• Since Omani shoppers are more satisfied in store purchase with Lulu hypermarket, they should sustain the level of services. Carrefour should concentrate more into customer service and merchandising of goods. They should consider the space at the cash counter and speed of processing at the checkout counter. Moreover they should provide more offers and discounts to attract more shoppers

• In online purchase of goods, Carrefour should improve the website design to be more attractive, easy navigation of products in the website, fastness in home delivery, providing detailed information about products and reviews in the web site

• Lulu hypermarket and Carrefour should emphasize on customer complaints and grievances in store shopping. This is one of most influencing factors to attract them to the floor. This is followed by more floor space in the shop. Carrefour should give more importance to the floor space for the consumers in store shopping. Providing offers and discounts would also attract the shoppers to the store

• In Online purchase of goods both the retailers should focus on quality of goods and convenience in the purchase process. They should also facilitate easy navigation of products by the shoppers in the website

Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. Online shopping has become a major disruptor in the retail industry as consumers can now search for product information and place product orders across different regions. A retailer or a shop is a business that presents a selection of goods and offers to trade or sell them to customers for money or other goods. Shoppers' shopping experiences may vary. From the study the researchers understood that most of Omani shoppers prefers to shop from the "Lulu hypermarket" than Carrefour. This is mainly due to the offers and discounts, merchandising of goods, floor space and easy processing at the checkout counter in Lulu hypermarket rather than Carrefour. Also, the behavior of staff can help the buyers to facilitate their buying. More space on the shop floor for comfortable shopping so the customer can move and see easily without any disturbance. The shelves management in Lulu hypermarket are more organized thus lead to reach the product easily. Value added services including fastness in home delivery and parking facilities also contributes to the frequent visit by Oman shoppers to Lulu hypermarket.

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